© Reuters. Alcon, Cooper, Medtronic favorite names in Mizuho
By Sam Boughedda
The company’s top buys include Alcon (NYSE:), Cooper Companies (NYSE:), Mizuho analysts said in a note on medical technology and diagnostics stocks on Thursday. and Medtronic (NYSE:).
Analysts said in a memo sent to clients that they see many of the same themes from this year extending into 2023, including “1) hospital health, 2) recession fears, and 3 ) inflationary.”
On the contrary, they also believe that “the pump feels ready for some headwinds that could drive higher valuations”, such as improved procedural volumes, larger-scale M&A and the return of IPO market.
“We’re rolling out coverage on Alcon (ALC, $85) and Cooper Companies (COO, $375) at Buy with both ratings reflecting benefits for vision proving relatively more mediocre compared to other areas of Medtech in previous recessions coupled with the benefit of recent/ongoing product launches provide favorable headwinds next year,” the analysts added.
“Our favorite big-cap names are ALC, COO and MDT, as we see: 1) ample portfolio balance for recession, 2) new product launches (eg. : RDN, Reduced IOP, MiSight), 3) accessibility to high growth target markets (eg glaucoma, TAVR, LAA, robotics), and 3) many times of research and development on target in the next 3 years.”